New Delhi: According to reports, Reliance, led by billionaire Mukesh Ambani, holds a dominant position in the Indian e-commerce market, surpassing competitors Amazon and Walmart. This advantage stems from Reliance’s ownership of the largest retail store network, its influential telecom operations, and its robust digital media presence.
The report highlights that India’s e-commerce market is transforming into a three-player landscape, with Amazon, Walmart, and Reliance taking the lead. Unlike the conventional retail business models pursued by Amazon and Walmart, which are predominantly either online or offline, the Indian market demands a different approach. The report suggests that an integrated model combining offline and online operations, along with a strong distribution network and cost advantage over online players, is crucial from the outset.
Reliance Industries is currently building the most extensive digital ecosystem in India. With its telecom arm Jio boasting an impressive 430 million mobile subscribers, its retail division consisting of 18,300 stores generating $30 billion in sales, and its growing digital portfolio accounting for 17-18% of the company’s revenue ($6 billion in e-commerce), Reliance is strategically positioning itself as a formidable competitor to Amazon and Walmart.
Research describes Reliance’s approach as a disruptive playbook, combining offline, online, and prime services to establish itself as a major contender. Reliance’s retail business employs over 400,000 people, and although the company has hired approximately 69,000 new employees since January to replenish its workforce, this number represents a lower turnover rate compared to the industry average of 30-40% in organized retail. Reliance has also implemented performance-based layoffs, with around 570 employees receiving pink slips after failing to improve their performance and serve the notice period beyond April 2023. However, these performance-related dismissals account for less than 0.14% of the entire workforce.
In summary, Reliance’s combination of a vast retail store network, dominant telecom operations, and robust digital media presence has positioned it as the leading player in the $150-billion Indian e-commerce market, surpassing Amazon and Walmart. With its integrated model and focus on building a comprehensive digital ecosystem, Reliance continues to disrupt the market and present a strong challenge to its competitors.